The National Student Financial Aid Scheme (NSFAS) received a report from Tshisevhe Attorneys Incorporated (TGR) following allegations made by the Organisation Undoing Tax Abuse (OUTA).
NSFAS provides comprehensive bursaries and student loans to deserving learners enrolled in approved courses at universities and TVET colleges. The funding not only includes money for tuition and registration fees but also includes several allowances for food, accommodation and learning materials.
OUTA's investigation claimed former NSFAS board chair Ernest Khosa leaked board decisions and the former CEO awarded contracts in exchange for kickbacks. Khosa denied the allegations and took a leave of absence for investigation.
He later resigned before the board was dismissed by the Minister.
NSFAS revealed that the investigation found no evidence to support OUTA’s claims against Khosa. However, the investigation did recommend that NSFAS discipline Khosa for discussing confidential NSFAS matters.
Tshisevhe Attorneys Incorporated recommended that NSFAS reprimand Khosa for his actions, which is for discussing the Board and Board decisions with Mr Ntumba and MrMaluleke, and for failing to inform the Board about such discussions.
OUTA’s Rudie Heyneke has called for a full investigation into the three individuals whose conversations were recorded. They are adamant that the recordings are authentic.
I think it is indisputable now that these recordings are authentic and in light of that I think that it is necessary to look at especially what was said by these three individuals and investigate those allegations that were made
OUTA added that many of the allowance payment challenges are due to the actions of former NSFAS CEO Andile Nongogo who cancelled a tender which would have seen one of South Africa’s largest banks facilitate allowance payments to students.
If that action had not take place the at the end of 2020 I can I can assure you that we we would have had less problems a lot less problems now with students uh uh um receiving allowances
The lucrative tender to facilitate direct payment allowances was later awarded to four fintech service providers.
In 2023, an investigation by Werksmans Attorneys found former Nongogo had a conflict of interest in selecting service providers for student allowances. He was dismissed for breaching procurement procedures.
This was the same tender Khosa was allegedly discussing when he was being recorded.
NSFAS Administrator Freeman Nomvalo welcomed the findings of the report but acknowledged that NSFAS has other challenges it has to deal with.
My focus is to help NSFAS get back on its feet.
Several NSFAS-funded students are at risk of being evicted from their residences because of unpaid accommodation allowances. There have also been allowance payment challenges.
Tshisevhe Attorneys also recommended that NSFAS conclude the termination of the service provider contracts. The failure to do this was one of several factors that led to the NSFAS board being sacked by Minister Blade Nzimande last month.
